MICHELIN - 2008 ANNUAL REPORT

Quality rewarded
Caterpillar delivered its Quality Excellence Certification
to Michelin. Caterpillar’s certification is reserved to
suppliers who have a certified quality system supported
by a continuous progress approach encompassing their
entire operations.
An Innovative Solution for a Mining Giant:
China Coal Pingshuo
Michelin signed a three-year contract with China Coal Energy, China’s
largest coal producer. It covers supply and maintenance for the 63-inch
giant tires that equip the dumpers used in China’s largest open coal mine
at Pingshuo. As Mr Li Zhihong, head of Procurement, noted: “We are not
just looking to buying tires or services. What we expect Michelin to do for
us is to optimize the way we use our tire resources, to gain productivity,
and therefore reduce costs, as well as to better preserve our environment.
With its engineers on site, Michelin’s expertise will help optimize the way
we use our tires. Not only we will be able to use them longer, but also
we will reduce equipment downtime considerably.”
In May 2008, China Coal Energy elected Michelin its Best Supplier 2007
out of 162 suppliers.
Specialty Businesses
Operating Margin is Stabilizing
at a Remarkably High Level
Net sales rose 5.5% to EUR 2,307 million.
Full-year operating income* was up 6.2%
to EUR 412 million.
Operating margin* reached 17.9%.
The Specialty tire activities were remarkable
in terms of both growth and results.
Sales volumes rose throughout the year
across segments, although the Original
Equipment segment slackened in the fourth
quarter.
The price increases combined with the mix
improvements served to offset the negative
impact of raw material costs and exchange
rates.
The rationalization of industrial capacity
and a policy of flexible manufacturing and
supplies were pursued.
* Before non-recurring items.
The rebalancing between Original Equipment
and Replacement production enabled
the Group to benefit from the growth
opportunities.
Maps and guides and ViaMichelin digital
services as well as Michelin Lifestyle licensed
products experienced a very dynamic year
in terms of developments and new product
and service launches.
56 2008 Michelin Annual Report